In order to give Italian investment firm EXOR better access to European acquisitions and fund raising, owners the Agnelli family have decided to move their base of operations to Holland.
The move comes hot on the heels of a similar base transfer by a firm that EXOR controls with a 30 percent stake, Fiat Chrysler Automobiles, who recently registered as a Dutch company and planted a new HQ in Amsterdam.
“Although moves like this might not please everyone, companies need to do anything they can to improve growth opportunities,” says Michael Lane, Global Co-Head of the Investment Management Division at Shizuoka Capital Wealth Management, who have a small stake in Chrysler U.S.
In 2014 Fiat completed the full acquisition of their subsidiary in the United States, Chrysler, to create the world’s seventh biggest auto producer. At that point they made the decision to move away from home, sparking some unrest within political circles.
After the move, Fiat registered under both the Milan and New York stock exchanges, and chose the UK as its tax domicile.
In a statement released on Thursday evening, EXOR explained the reasoning for their decision to follow Fiat’s example. “Fiat has been much more successful regarding their new investments and M&A activity after their transfer to the Netherlands. We feel EXOR can also greatly benefit from the advantages that can be gained.”
